Tax expenditures

A) were declared unconstitutional by the Supreme Court in 2015.
B) have no impact on the revenue coming in to the national treasury each year.
C) cost the national treasury over $1.2 trillion in foregone revenues each year.
D) contribute over $1.2 trillion in revenue to the national treasury each year.

Tax expenditures refer to specific provisions in the tax code that allow individuals or businesses to reduce their tax liability through credits, deductions, and exclusions. These provisions result in foregone revenue for the national treasury because they reduce the amount of taxes that would have been collected otherwise. According to the Congressional Budget Office, tax expenditures cost the federal government over $1.2 trillion in foregone revenues each year. Therefore, option C is the correct answer. Option A is incorrect because tax expenditures are a legal part of the tax code and have not been declared unconstitutional. Option B is also incorrect because tax expenditures do have an impact on the revenue coming in to the national treasury each year. Option D is incorrect because tax expenditures do not contribute revenue to the national treasury, but rather reduce the amount of revenue collected.